Checking to see if anyone has heard of interchange rate + 0 or possible a interchange minus x?
We are constantly asked to have our merchant account shopped and I'm wondering if it can go much lower than it already is. We are at interchange + .0x. I find it hard to belive our processer is making much off the .0x. Or is it like the auto industry where they get a kick back of the interchange rate?
We too have shopped our cc rates on a regular basis and have switched a few times. With all the different fees and rate structures you never really know what you are going to pay until you receive your first invoice. The lack of transparency is criminal.
Visa and MasterCard still charge an assessment fee of .0925% and .095% on top of interchange.
There are also overhead costs to set up a merchant account. If you are priced at interchange + 0 it is because you are so large that just being able to associate credit card processing with your company is worth the loss on the account.
If you are on interchange + 0% and pennies per transaction and you are not processing in the hundreds of thousands then I commend you for being an excellent negotiator.
[edited by: tedster at 7:44 pm (utc) on Mar. 15, 2009]